October Milk Price Increase Becomes Reality…Dairy Industry Says "Minimizing the Increase"

Seoul, Maeil, Namyang Raise White Milk Prices by 4-6%

The reality of milk price increases in October due to rising raw milk costs is becoming apparent. Dairy companies say price hikes are inevitable but aim to minimize the increase to ease the burden on consumers.

According to the food industry on the 25th, Namyang Dairy plans to raise the ex-factory price of its flagship product, 'Mat-it-neun Milk GT 900mL,' by about 4.6% starting next month, and the ex-factory prices of other dairy products will increase by an average of around 7%.

A Namyang Dairy official stated, “Due to the rise in raw milk prices, an increase in product ex-factory prices is unavoidable,” adding, “With consumers highly concerned about price stability, the company has minimized reflecting other cost increase factors in prices to reduce the burden on consumers.”

Maeil Dairies will also sequentially raise prices by distribution channel starting from the 1st of next month for products using domestic raw milk, including milk, processed milk, fermented milk, and cheese. Convenience stores will reflect the price increase from November 1. By item, milk will increase by 4-6%, processed milk by 5-6%, and fermented milk and cheese by 6-9%, with all items seeing single-digit percentage increases. Based on discount stores, Maeil Milk is expected to be sold in the high 2,900 won range.

A Maeil Dairies official explained, “Although there are many factors driving price increases, such as rising raw milk and sugar prices, as well as packaging, processing, and logistics costs, we have worked to minimize the price increase to ease consumer burden and stabilize prices.”

However, the prices of 14 types of cup coffee, which were reduced last month, will be maintained, and the price of three types of 'Selex Profit Drink' will be lowered from 3,500 won to 3,300 won.

The Dairy Promotion Association, a consultative body of the dairy and dairy product industries, agreed on a raw milk price increase of 88 won per liter (8.8%) for drinking milk and 87 won per liter (10.9%) for processed milk. At the board meeting that day, the basic price of milk for drinking was set at 1,084 won per liter, and for processed milk at 887 won per liter. This year’s increase is the highest since the raw milk production cost-linked system was implemented in 2013, when prices rose by 106 won (12.7%). The consumer price of milk is determined by adding incentives paid to farms, manufacturing costs, logistics costs, and distribution margins to the basic raw milk price.

Earlier, Seoul Milk announced that the price of its white milk product 'Na 100% Milk' 1ℓ will increase by 4.9% to 3,200 won at convenience stores starting next month, up from the previous 3,050 won. Additionally, the 200mL product price will rise from 1,100 won to 1,200 won (9.1%), and the 1.8ℓ product price will increase from 5,550 won to 6,200 won (11.7%). The ex-factory price of Na 100% Milk 1ℓ supplied to large discount stores will be raised by about 3%, keeping it below 3,000 won to minimize the increase. Accordingly, the product price currently in the high 2,800 won range at large marts is expected to be set in the high 2,900 won range.

This content was produced with the assistance of AI translation services.